In deciding whether to invest in excess capacity in order to deter entry, incumbents should consider all of the following except
a. the order of play in pricing and capacity choice decisions
b. the customer sorting pattern
c. the sunk cost required to achieve excess capacity
d. the joint-profit-maximizing cartel output
e. the potential entrant's projected profitability
d
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Use demand and supply analysis to explain why an expectation of Fed rate hikes would cause Treasury prices to fall
What will be an ideal response?
If the ________ curve is relatively more unstable than the ________ curve, an interest rate target is preferred
A) IS; IS B) IS; LM C) LM; IS D) LM; LM
Examples of public goods include national defense, police, and the U.S. Postal Service
a. True b. False Indicate whether the statement is true or false
One of the widely-acknowledged problems with the consumer price index (CPI) as a measure of the cost of living is that the CPI
a. fails to account for consumer spending on housing. b. accounts only for consumer spending on food, clothing, and energy. c. fails to account for the fact that consumers spend larger percentages of their incomes on some goods and smaller percentages of their incomes on other goods. d. fails to account for the introduction of new goods.